Here at the MBAG event in Northern Florida some of the topics of conversation is the economy, the inability to predict interest rates, families, and lending. It has been reported that 25 to 34-year old’s spend more on mothers than any other age group for Mother’s Day, which hopefully is not a mea culpa that they should have called more during the course of the year. For the millions of Americans that celebrated Mom yesterday, the hope was probably that they could put a smile on her face after all the ones she had put on theirs over the years. For us parents, there’s no better feeling than seeing excitement on the face(s) of our children. While the frequency of that may wane after they grow up and finally leave the house, my son Robbie told me he is more excited about today’s podcast interview with economist Elliot Eisenberg than any interview he has done since the Chrisman Commentary Daily Mortgage News podcast launched a few months ago. I’m not sure what that says considering he has had me on as a guest several times. Regardless, if you have yet to give it a listen, today is a great episode to start with.
Broker and Lender Services and Products
“Consumer Direct Lenders: You're losing purchase deals. The problem is twofold: (1) Agents take your clients to local lenders. (2) Your Loan Officers don't have time for follow ups. Clever Real Estate can help. We match your buyers with top Agents. Then our team nurtures them until close. With Clever, Loan Officers are seeing a 25% increase in purchase loans. It’s free: No contract and no technical integration needed. Too good to be true? Book a call with our cofounder Luke Babich and we'll show you how.”
How’s your TPO business? Have you ever surprised a broker when canceling or suspending a loan with incomplete actions? Do your brokers know the specific underwriting conditions not cleared for each loan? Are your brokers properly engaged and the origination facilitated through approvals and closing? So many questions and challenges!! Interested how Connector by Velma® can help you run your TPO business without all the surprises and in efficiencies? More info here.
More than 4.2 million Americans have been unemployed for 27+ weeks. There’s no doubt that many homeowners will need ongoing support from their servicers, especially those with forbearance plans set to expire in the coming months. Servicers that aren’t prepared to manage default risk may be caught off-guard and, if understaffed; they may not have the workforce to communicate with borrowers effectively. Jeff Johnson, COO of Computershare Loan Services (CLS), states, “There’s no question there’s going to be a wave of defaults coming. I view that as an opportunity for special servicers to help clients with contact strategies to better communicate with borrowers. Our goal is to make that default wave as small as possible.” Contact CLS to learn how they leverage their special servicing expertise to help clients and customers reach their goals.
Why would a successful broker shift their business to reverse mortgages? Find out why when Mark O’Neil, National Leader of Wholesale and Correspondent Sales at Reverse Mortgage Funding LLC (RMF), welcomes special guest RMF President David Peskin for a firsthand account of why he transitioned to the reverse mortgage industry after a long and prosperous tenure in the traditional mortgage sector. During the Q&A discussion, David will be answering your questions in real-time and will also share his personal experience switching his business from forward to reverse and the hurdles he encountered while making the transition. RMF's Education Leader Craig Barnes and Pete Kulis, Sales Lead for Wholesale and Correspondent Sales, will join Mark and David to give an overview of what mortgage brokers who are new to reverse can expect when they partner with an industry-leading lender like RMF. Space is limited. Save your seat now.
Despite a slowdown in refinance volumes, Comerica Bank’s warehouse lending program continues to set new records in 2021. Thanks to its uninterrupted commitment to the mortgage industry over the past six decades, Comerica Bank is a partner you can trust. As volumes subside, now is the time to reevaluate your strategic partnerships and ensure you have the support and flexibility you need to effectively manage and grow your business. Comerica Bank tailors its warehouse lending solutions to accommodate your business model, recognizing that not all mortgage bankers are the same. Take comfort knowing that we are in this together. To see how Comerica Bank can raise your expectations of what a bank can be, contact Von Ringger at (313) 222-9285 or Trey Worley at (214) 462-4279. Member FDIC. Equal Opportunity Lender. Loans subject to credit approval.
Looking to flex your servicing operations with changing borrower needs and elevate the customer experience? It’s time to take a digital-first approach to your routine and default servicing processes with the right mix of technology, tools, and people. Sourcepoint’s Servicing solutions combine an Intelligent Back Office and Digitally Empowered Contact Center, powered with analytics tools to help you understand customer behaviors and maintain compliance. With licenses in all 50 states, we currently work with five of the top 15 servicers helping them improve efficiencies, reduce cost, and strengthen compliance. Learn more and get ready to outperform in a digital-first world.
Enjoy 2 Business Day Priority Purchase Underwriting and a (.250) LLPA incentive for all Conventional, VA, and FHA purchases with the Freedom Mortgage Wholesale Division’s Big Spring Purchase Tee Off! Offer a hole in one experience with every new Conventional, VA, and FHA purchase! Plus, offer more buying power for your Jumbo VA borrowers with no maximum loan amount and no down payment for eligible* VA borrowers. To learn more, check out our rate sheet or email AskFreedom@FreedomWholesale.com to have an AE contact you. *Subject to credit approval, requires full entitlement; for purchases and cash-out refinances only and not applicable for loan amounts<= $144,000. For IRRRLs, VA will continue to guaranty 25% of the loan amount without regard to the Veteran’s available entitlement and/or county loan limits.
Customer retention is critical for ROI. Don’t believe it? Increasing retention by just 5% increases profits by 25-95%. What’s more, retained customers spend more and are likely to refer friends and family. To help lenders keep customers for life, Top of Mind has launched the Surefire Retention Center, where LOs can build automated gift campaigns based on rules such as loan type (refinance or purchase), loan amount and occasion. Once a retention gift campaign has been activated, Top of Mind takes care of the rest, dynamically customizing, professionally packaging, and shipping the gift to its recipient. See how Surefire’s Retention Center can help foster lifelong client loyalty.
Friday is National Apple Pie Day and, in preparation, here are some tips for taking a perfectly good apple pie and making it great. Similarly, what if you could be given simple tips on how to turn good LOs into great ones? You’d probably want that and some ice cream on top, right? Lucky for you, Sales Boomerang CEO Alex Kutsishin, Mortgage Coach President Joe Puther, and Finance of America Head of Marketing Karissa Stiglic have the recipe for great LO performance. Join them on May 20 at 2 pm ET to get the secret ingredients to higher volume, increased conversions, speed to lead, lower cost of funding loans and higher borrower retention.
OMBA’s Virtual Convention starts today: Bringing Ohioans Home. Also today, join Dr. Michael Fratantoni, MBA’s Chief Economist, and Aaron King, Snapdocs CEO, as they analyze industry trends, explain how lenders are adapting to market changes, and discuss the role technology is playing through it all.
Join MMLA’s May 11th webinar for a deeper dive into the new requirements to meet General QM/Safe Harbor status: QM – The Final Ruling?
May 12th offers, “Keeping Up with the Changing Market” presented by the Professional Mortgage Women and MBA/MW and MMBBA Education Committees.
M&A interest and IPO activity are heating up in the mortgage industry. 2020's record-breaking profits may have owners looking to buy, sell, or take your company public. This Thursday, May 13th, join LBA Ware CEO & Founder Lori Brewer and myself: Deal or No Deal: Growth and Exit Strategies for Today's Mortgage Lender.
NALHFA announced that registration is open for the 2021 Virtual Annual Conference to be held from 5/12-5/14: a convergence of thought leaders, online professional networking, and the latest industry trends and hot topics.
Flagstar Bank SVP Angelo Rea, who oversees third-party origination business partners and manages government risk, will discuss all things government lending and why you should consider FHA, VA, and USDA products as viable alternatives for your borrowers. Register for this May 13th online event; the link to attend will be in your confirmation email.
Join Plaza on Friday May 14, 11AM PT for an overview of The Three C's of mortgage banking including income/employment, assets/reserves and ratios. Understand the factors that make up a credit score, and the fundamentals of mortgage risk.
Plaza Home Mortgage is offering a webinar to discuss key information about eMortgages. Register for What You Need to Know About eMortgages.
The May 18 in-person Texas Mortgage Roundup is being held at the Wyndham San Antonio Riverwalk.
Land Gorilla is hosting a live webinar, “Diversify Your Mortgage Offerings with USDA Construction-to-Permanent Loans”, on Wednesday, May 19th at 2pm ET with guest speakers Joaquin Tremols and David Corwin. Bring questions for the speakers to answer during the live Q&A portion of the webinar.
QC NowWebinar: Insights into Mortgage QC Trends: Will History Repeat Itself. Join ACES EVP Nick Volpe and President, Phill McCall on Wednesday, May 19, as they dive into lessons learned from these 2020 findings and turn to where QC is headed in 2021.
Non-QM loans are back at JMAC Lending. JMAC is now offering DSCR loans for your experienced and first-time investors, and register today for the Venice DSCR Investor Non-QM webinar on Tuesday, May 18, at 10AM PT. Click here to register.
At Forward, Blend’s virtual event from May 18-20, you can learn from industry leaders, Blend executives, and ecosystem partners as we discuss how we can move into the digital future of lending together.
XINNIX is hosting an exclusive executive event on Thursday, May 20 at 2 PM ET, “GRIT: Leading Through the Unimaginable.” Hosted by XINNIX Founder & CEO, Casey Cunningham, the event will feature special guest speaker, Paul J. Voss, PhD, who is the perfect scholar to help today’s leaders learn about the powerful combination of grit, leadership and core competencies that will help their organizations thrive thru events that are unimaginable.
Equilibrium Solutions will be sponsoring the May 21st edition of Friday’s Mortgage Collaborative’s Rundown with Rich and Rob. Paul Campbell will be leading the discussion with Rich Swerbinsky, the COO of The Mortgage Collaborative, and me in covering current events in the mortgage market for 30 minutes starting at 3PM ET: “The Rundown with Rob and Rich.”
Join Reggora for a live webinar on Tuesday, May 25 at 1pm ET entitled Efficient Appraisal Ordering: Leveraging Automation for Increased Control. You’ll learn what you can automate, the benefits of customization, and how easy it is to automate with Reggora.
The New England Mortgage Expo returns June 10 & 11 to the Mohegan Sun Resort & Casino. With over 2000 attendees in 2020, you won't want to miss this opportunity to be a part of New England's largest and most exciting mortgage event. Register to Join your peers for an exciting day of networking, product showcases, educational sessions, motivational speakers, and so much more. Use Code OCNFREE* for complimentary registration.
Register today for the MISMO Sprint Summit, taking place online June 7-10 and featuring an exciting slate of “Going Digital” sessions and speakers. MISMO is creating solutions to help address some of industry’s biggest challenges and this event is crucial for anyone who wants to be part of the industry’s digital future. Agenda is here and registration link is here. Monday’s kickoff session is a discussion with FDIC Chief Innovation Officer Sultan Meghji and MISMO President Seth Appleton about innovation in a digital world.
The Mortgage Bankers Association of Florida’s Secondary and Convention is from June 22-24 in Orlando.
Capital Markets
Yes, commodities like iron ore and copper are on fire, price-wise. Last week’s ISM manufacturing report highlighted the challenges facing many producers as demand for their products surges due to strong household financials. The index fell from March to April as production declined due to raw materials and labor shortages. Notably, the microchip shortage has paused production at many auto assembly plants across the county. Backlogged orders spiked to an all-time high of 68.2 in April as respondents noted historical lead times and rising prices. The much larger services side of the economy is experiencing many of the same constraints as manufacturing which led to a slip in activity, but not for lack of demand.
Jobs and housing drive the U.S. economy, and employers in all sectors of the economy reported finding and retaining labor for both skilled and unskilled work as a major challenge which has resulted in turning away business that would otherwise have been accepted if shops were fully staffed. The latest economic data did little to change the course of interest rates over the last week as both the markets and the Fed are waiting to see how inflation plays out over the next couple months. For the moment, there is no expectation to changes in monetary policy through the rest of the year.
Looking at bonds Friday, and therefore rates, the poor payrolls report to close last week didn’t have an expected effect on the 10-year and MBS prices, both of which eventually made their way back to where they were prior to when the numbers even came out. One can never predict the market, and the pullback in bonds was assisted by the lack of a bearish response from the commodity market. Attention now turns towards this week’s supply.
The most likely market moving event for this week is Treasury’s Quarterly Refunding consisting of a joint-record $126 billion in new 3-year, 10-year and 30-year coupons tomorrow to Thursday. We also have CPI on Wednesday, PPI on Thursday and a busy Friday headlined by retail sales in addition to import prices, industrial production/capacity utilization, business inventories and Michigan sentiment. Class A and B 48-hour notifications are Tuesday and Friday, respectively.
With no economic releases of note today, though the Employment Trends Index for April comes out later this morning, it would seem remarks from Chicago Fed President Evans as well as the NY Fed Desk purchases will be what will garner investors’ attention. Today’s schedule sees the NY Fed Desk conducting two operations totaling up to $4.8 billion of conventionals. We start the week with Agency MBS prices roughly unchanged as is the 10-year yielding 1.58 percent.
Employment
Caliber Home Loans is dedicated to ensuring you have a successful, meaningful, and fun onboarding experience. From day one, you’ll get hands-on learning about Caliber’s intuitive loan system with training videos. Watch this video as team loan consultant Mike Guild explains how our high-powered technology and processes will increase your productivity. Join a lender that cares about giving our loan originators the best odds for success. To be immediately considered for a sales position, email James Hecht.
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